Bonfring International Journal of Industrial Engineering and Management Science, Vol. 5, No.

2, June 2015

78

A Study on the Micro Enterprises Promoted

by Kudumbashree and their Marketing
Strategies in Malappuram District
M.K. Irshad and B.K. Muhammed Juman
Abstract--- The role of micro enterprises in rural
development and women empowerment is widely recognized
the world over, particularly in developing nations like India.
Micro enterprises play a vital role in poverty alleviation and
socio-economic development of the poor. Micro enterprises
help to bring about equitable and balanced economic
development with relatively low amount of capital investment.
The Government of Kerala State has introduced a novel
scheme of poverty alleviation based on micro-credit and self
help grouping. Paraphrased as Kudumbashree (Prosperity of
the Family), the scheme aims at improving the living levels of
the poor women in rural and urban areas. The project aims at
removing poverty among rural women households through
setting up of micro-credit and productive enterprises. The
activities such as micro-credit and micro-enterprises under
the scheme were undertaken by the locally formed Community
Development Societies consisting of poor women.
The State Poverty Eradication Mission-Kudumbashreelaunched by the Government of Kerala in India is a massive
poverty eradication programme in contemporary history
especially in Malappuram. It has been proven without doubt
that women empowerment is the best strategy for poverty
eradication. Women, who were regarded as voiceless and
powerless started identifying their inner strength,
opportunities for growth, and their role in reshaping their own
destiny. The process of empowerment becomes the beacon
light to their children, their families and the society at large. It
opens a new vista the in development history. This paper looks
in to the role of micro enterprises functioning under
Kudumbashree in the economic development of Malappuram
district and their marketing strategies.
Keywords--Kudmbashree,
Micro
Empowerment, Economic Development

Enterprise,

M.K. Irshad, Research Scholar, Bharathiar University, Coimbatore,

Manar Manzil, Thottilangadi (P.O.), Irivetty, Areacode Via, Malappuram673639. E-mail:irshadmkmaxmax@gmail.com
B.K. Muhammed Juman, Research Scholar, Bharathiar University,
Coimbatore, Darul Birru(H), Puthalam, Areacode (P.O.), Malappuram673639. E-mail:juman.bk@gmail.com
DOI: 10.9756/BIJIEMS.8086

I.

INTRODUCTION

UDMBASHREE is a poverty eradication project

officially launched by the Government of Kerala with the
active support of the Centre and NABARD for wiping out
absolute poverty from the State within 10 years. The project
was inaugurated by the Prime Minister, Shri Atal Bihari
Vajpayee, on May 17, 1998 at Malappuram. The project is
implemented by the State Poverty Eradication Mission of the
State government through local self-governing bodies. It aims
at eradicating poverty in ten years through concerted
community action under the leadership of local self
government bodies. This mission is the transformation of
earlier Urban Poverty Alleviation Programmes (UPAP) like
Urban Basic Services (UBS) and Urban Basic Services for the
Poor (UBSP) which had been successfully implemented for
improving the livelihood of the poor in urban areas with
community participation. The success of UBS/UBSP projects
prompted the State Government to extend this project to all
urban local bodies in the State. The implementation of
Government-sponsored programmes for improving health and
sanitation in Malappuram District was channeled through
neighbourhood groups. For effective implementation of
Kudumbasree a community-based organisation is in action.
The Neighbourhood Group (NG) consisting of 20-40 women
are selected from poor families. Meetings are convened on a
weekly basis in the house of NG members. To co-ordinate
activities of each NG, five volunteers from among the
members of the group are selected. Besides empowering
women through community-based organisation, Kudumbasree
encourages and guides them to start small enterprises.
Products manufactured by such enterprises are sold through
rural marketing network.
Kudumbashree views Micro Enterprise Development as an
opportunity for providing gainful employment to the people
below poverty line and thereby improving their income and
living standard. Micro enterprise development is an emerging
process which will start with low capital low risk and low
profit at the initial stage which will gain momentum and later
switch on to low to medium capital and then to low to medium
risk. This Paper aims at examining the socio-economic impact
of the Kudumbashree projects and the role of micro
enterprises functioning under Kudmbashree along with their
marketing strategies and enhance to provide suggestion
regarding their functioning for the economic development of
Malappuram district, Kerala.

ISSN 2277-5056 | 2015 Bonfring

Bonfring International Journal of Industrial Engineering and Management Science, Vol. 5, No. 2, June 2015

II.

ENTREPRENEURSHIP DEVELOPMENT

Entrepreneurship is the vibrant assertion of the facts that

an individual can be developed, outlook can be changed and
their ideas can be converted into action through an organized
and systematic program for entrepreneurs.An entrepreneurship
need not be only on individual level but also functional level
need to be developed. Entrepreneurship simply means creation
of business or starting of business. It is the process of
changing ideas into commercial opportunities and creating
values.
Operational Definitions
Area Development Society (ADS)
Area Development Society (ADS) is the federation of 8-10
NHGs formed at ward level, consists of representatives of the
poor elected from various federating NHGs. The Area
Development Society functions through three distinct bodies
viz., General Body, Governing Body and Monitoring and
Advisory Committee.
Community Development Society (CDS)
Community Development Society (CDS) is a registered
body under the Charitable Societies Act is formed by
federating various ADSs at Panchayath level. The CDS has
three distinct bodies viz, General Body, Governing Body and
Monitoring & Advisory Committee
Micro Enterprises
Micro enterprise is any income generating activity owned,
operated and managed by a group, consisting of at least five
and not more than fifteen women members of the
Kudumbashree NHG s with an investment ranging from Rs
5000 to Rs 5 lakh and should have a potential to generate
atleast Rs 1500 per member per month by way of wages or
profit or both together, with an expectation of turnover
ranging from Rs 1 lakh to Rs 5 lakh per year.
Neighbourhood Group (NHG)
It consists of women from 20 40 families and acts at
grassroots level .NHG are the building block of the
organisation. In each Neighbourhood Group from among its
members, five Volunteers are elected for undertaking various
functional activities. They are Secretary, President,
Community Health Volunteer, Income generation activities
volunteer and Infrastructure Volunteer.
Women Entrepreneur
Women entrepreneurs are those who organize or operate
and control an enterprise including small and cottage
industries with not less than 80% of the total workers being
woman and whose holding in the enterprise is at least 51%.
III.

REVIEW OF LITERATURE

Kannan (et al) (2004) made an attempt to analyze the

significance of informal women entrepreneurs in generating
income for their families .The major findings of the study arewomen entrepreneurs depend upon the family for involvement
in entrepreneurship. The major reason for involvement in
informal trade is due to poverty in their families. In rural

79

India, women turn to self employment and entrepreneurship as

a means of earning for livelihood. The study was conducted in
five villages around Tuticorn town.
Mohammed Seik (et al) (2004) suggested that in the rural
context womens control over ownership of land can play an
important role not only in economic betterment but also in
terms of social and political empowerment as land is the
symbol of political power and social status. Micro credit
programmes have to be visualized in the context of new global
economic order in liberalization, globalization and
privatization policies which have led to job losses in the
formal sector decline in social sector spending and growing
unemployment. In this scenario the last option left for poor
women is self-employment, which micro credit aims to
promote. He concluded that since the efficiency of micro
credit programmes is not independent of other developmental
interventions, it could at best be one of the components of
wider developmental agenda.
TK Jose, Executive Director of Kudumbashree (2006)
commented that Kudumbashree views Micro Enterprise
Development as an opportunity for providing gainful
employment to the people below poverty line and thereby
improving their income and living standard. In setting up of
Micro enterprises for the poor and enabling to take up
livelihood activities Kudumbashree has developed its own
methodology. So far 27477 women from urban area and 2.07
lakh women from rural areas were given the sustainable selfemployment opportunities with reasonable income.
IV.
1.
2.

3.
4.
5.
6.
7.

OBJECTIVE OF THE STUDY

To study the functioning of Kudumbashree unit in

Malappuram
To analyse the role played by the Micro enterprises
promoted by Kudumbashree in the Economic
empowerment of Women.
To analyse financial performance of Micro enterprises
under Kudumbashree
To Understand the investment pattern of Micro
enterprises
To trace out the mode of advertising adopted by each
micro enterprises
To trace out different marketing strategies adopted by
various Kudumbashree Micro enterprises
To trace out the hurdles faced by Kudumbashree
Micro enterprises in marketing
V.

SCOPE AND SIGNIFICANCE

Scope
To understand the impact of Kudumbashree, one simply
has to look at its scope. The 41-lakh members in the
movement translate into nearly 50% of the households in the
state. In other words, half the state's population makes a living
out of this programme. Kudumbashree's success gains even
more shine because of one constant problem in Kerala. The
men usually spend a big part of their income on vices such as
liquor, cigarettes, drugs and gambling.

ISSN 2277-5056 | 2015 Bonfring

Bonfring International Journal of Industrial Engineering and Management Science, Vol. 5, No. 2, June 2015

Kudumbashree today runs about 35,000 microenterprises

in fields as diverse as food processing and handicraft and
cosmetics. Remember that these units are managed by women
from poor families with no formal training. Scope of the
present study is confined to the role of Kudumbashree Micro
enterprises in poverty alleviation, Women empowerment and
overall economic development of Malappuram

80

for Children, Regular Meetings to share experiences and

holding cultural programmes, Community Health Care,
Environmental Sanitation and Informal Banking through
Thrift and Credit Societies and Self Help Groupings. The
present structure of Kudumbashree

Significance
1. It help to understand the role of Kudumbashree in
Micro enterprises in economic development of
Malappuram
2. It helps to know the role played by Micro enterprises
in Women empowerment and poverty alleviation.
3. It helps to explain the financial performance of Micro
enterprises.
VI.

RESEARCH METHODOLOGY

Sources of Data
Both primary and secondary data will be used for the
purpose of study. Primary data is collected from
Kudumbasree Micro enterprises and member beneficiaries.
Secondary data required for the study is obtained from
journals, magazines, books and other periodicals and report of
Government of India, and Governmemnt of Kerala.
The Modes Operandi
The formation of the grass root level Community Based
Organisation (CBO) is the fulcrum of the Kudumbashree
mission. The grass root level poor women are organized
through Neighbourhood Groups (NHGs) consisting of 20-40
women with 5 functional volunteers, viz.,
Community Health Volunteer
Income Generation Volunteer
Infrastructure Volunteer
Secretary, and
President
The Neighbourhood Groups (NHGs) are coordinated at
ward level through Area Development Society (ADS) by
federating 8 to 10 NHGs. To coordinate the activities at the
Panchayat level there is the apex body called Community
Development Society (CDS), which is heading the Area
Development Societies.(ADSs).
The CBOs are the lifeblood of Kudumbashree. The NHG
members used to meet once in a week in one of the members
house. The members, who meet together, discuss their
problems and make joint effort to find solutions to their
grievances with the support of the functional volunteers. This
would bring up interpersonal feelings among the members and
would generate supportive attitude to build confidence among
them. Apart from this, they practice small savings through
thrift which should be used to create productive assets. The
formulation of micro, mini and sub-plans help facilitate the
poor women households to participate in planning process as a
major stake holder.

Motto of Kudumbashree
Social Empowerment, Womens Empowerment, Economic
Empowerment
Building a Future
The amazing success of the participatory system of
poverty alleviation in Alappuzha Municipality prompted the
Government of Kerala in 1994 to extend the scheme to the
entire district of Malappuram, one of the most backward
districts in India. The district of Malappuram has the highest
fertility and infant mortality rates in Kerala. The Government
of Kerala , with the assistance of the UNICEF , chose the
district of Malappuram to experiment with poverty alleviation
programme called Community Based Nutrition Project and
Poverty Alleviation Programme (CBNP &PAP) aiming at
helping to reach out the unreached through community action.
The strategy formed the Convergent Community Action and
Self Help to enhance the capacity of the family to help meet
their basic needs such as drinking water, primary health care,
basic education , safe environment and food security. The non
economic risk indicators adopted for Malappuram model are:

Families with substandard houses and huts

Family with no sanitary latrines
Families having no safe drinking water supply within
atleast 300 mteres
Families having more than 6 members
Families with only one earning member
Families belonging to SC/ST
Families having illiterate members
Families having only 2 meals or less a day
Families having alcoholics, widows and divorcees
Initially, the Kudumbashree movement restricted itself to a
few areas in farming and agri-business such as rice and
vegetable cultivation and making curry powder, pickles, rice
powder and so on. Members have since ventured into fields
such as construction, driving, cafes, brand development
long seen as the preserve of men in Kerala.

The activities of the Malappuram CDS include Training

and Orientation Programme for Women, Imparting Education

ISSN 2277-5056 | 2015 Bonfring

Bonfring International Journal of Industrial Engineering and Management Science, Vol. 5, No. 2, June 2015

Jams is a successful micro-enterprise in Manjeri

municipality of Malappuram. It is well known today for its
breakfast kit of pathiri powder, puttu powder, wheat powder
and rava powder, in half kilogram packs. The two kilogram kit
priced at Rs.65 makes for a healthy breakfast for a family for a
week. The kits are attractively packed in cloth bags. In
addition to these Jams also makes one kilogram idli mix
packets priced at Rs.54 and one kilogram dosa mix packets
priced at Rs.56. The group also purchases mustard, cumin and
fenugreek seeds in bulk at wholesale prices and after washing,
drying and packing them delivers them in shops. All these
ventures have been profitable and the group has been able to
purchase a goods carrier to take its produce around. Jams
member Ambika says that they are always on the lookout for
new opportunities depending on market needs. During bakrid
this year they made special payampori which sold well.
The eight women in Jams believe in the adage 'unity is
strength'. They started working together three years ago
producing Nutrimix for anganwadis. The unit was set up with
an investment of Rs.2.5 lakhs of which Rs.1.5 lakhs was
mobilised as subsidy and member contributions of Rs.12,500
each. They were able to supply Nutrimix to 103 anganwadis.
Since the machinery was not utilised to the full they decided to
diversify and make the breakfast powder kits. The group
constantly strives to be different. Each month they make sales
of upto Rs.1.5 lakhs. The members of the unit Ambika,
Jayanti, Ramlat, Mini, Saraswati, Sheeja, Muneera and Cecily,
the group leader work on all days of the week, often even on
Sundays. Their commitment and focus are contributors to their
success. Areca palm leaf is another important product now a
days available in market. It has been started at Edavanna,
Malappuram with a variety of products related with areca
palm leaf.
VII.
1.
2.
3.

4.

5.

LIMITATIONS OF THE STUDY

FINDINGS

It was found that majority of the respondents around

83.33% are exposed to training at the initial stages of
the establishments of the units.
In the initial stages it was seen that 87% got training in
manufacturing, 90% in marketing, and 50% in
personnel selling, on general orientation.
Only 90% got training on marketing and 7% never
attended any training on marketing.

It is seen that 50% of the respondents depends on

personnel selling,40% on sales promotion, while only
10% depends on advertisement to promote their
product.
From the study it was concluded that only 40% of the
respondents advertise their product. 75% have
designed their own logo and only 25% assigned
outside agency for advertising their product.
It was observed from the study that 43.33% of the
total respondents have not spent any amount for
branding. 16.67% spent a sum between Rs 3000 to
Rs.10000 for branding and advertisement whereas
10% spent a sum above Rs.10000. 30% of the total
population did not respond to the question.
From the study it was found that 90% of the
respondents
are
getting
assistance
from
Kudumbashree in the marketing activities.
It was clearly observed that 73.33% of the respondents
expect financial assistance from Kudumbashree.
60% of the respondents are getting financial assistance
from Kudumbashree
It is seen the 46.67% of the respondents have not
developed separate slogan for their micro enterprises.
It is inferred that 70% of the respondents believe that
advertisement has made a tremendous impact on total
sales whereas 23.33% feels advertisements has no
impact on sales volume and 6.67 % did not respond.
IX.

The research area is restricted to Malappuram District.

The sample size is limited to 30 respondents.
The study is restricted to the women micro enterprises
formed and organized by the District Kudumbashree
Mission.
The respondents are either the secretary or the
president only of the microenterprise who acts as
leader in respective groups.
The district coordination team of Kudumbashree,
Panchayath level community organizers and office
bearers of CDS who really organize and monitor the
Kudumbashree micro enterprise activities not come
under respondent category.
VIII.

81

SUGGESTIONS

Motivation and Leadership classes must be conducted

by the organisation which will definitely help the
entrepreneurs to deal with people, lessen conflicts
among the groups, boost morale, increase self
confidence and gain self respect.
Kudumbashree must ensure that Special camps,
orientation classes, workshops must be conducted by
those people having expert knowledge in the
concerned subjects.
Officials must ensure that they make a visit to the
enterprises more frequently giving proper support
system, clarifying doubts and proper guidance.
Advanced level classes in topics like Organizational
management, financial accounting, entrepreneurship
and marketing have to be imparted at CDS level.
Follow up classes at ADS level should be arranged for
reinforcing the basic level courses given at NHG level.
Proper guidance and communication must be given to
the local authorities, semi government organizations
and government aided institutions to purchase the
products made by Kudumbashree units. They have to
give priority to Kudumbashree units while inviting
quotations from the suppliers. This ensures a ready
marketability of the products.
Kudumbashree should ensure that proper guidance
should be given for the hygienic disposal of wastages
for those who undertake waste disposal project.
It would be better if Kudumbashree organizations
select each panchayat and taluk and give awareness

ISSN 2277-5056 | 2015 Bonfring

Bonfring International Journal of Industrial Engineering and Management Science, Vol. 5, No. 2, June 2015

programmes, show documentary films on hygiene,

cleanliness, importance of bio gas plant, water
harvesting, solar energy, organic farming .
The harmful and adverse effect of plastic pollution
must be properly imparted to the public as well as to
the entrepreneurs.
Kudumbashree must compel and encourage the
entrepreneurs to use eco friendly product in their
enterprises.
Women entrepreneurs should get the benefit of
Information technology so that it can be utilized for
passing timely and urgent information about
processes, products and marketing strategies. This
may help them sharpen their tactics to cope up with
the competing world
Permanent outlets must be sold only through proper
advertisement.
The appeal of the product can be enhanced by
attractive packaging and designing of a logo for all
Kudumbashree enterprises would give a professional
touch and even a boost in their sales.
X.

Kudumbashree Micro enterprises are in their early stages, they

show a clear symptom of sustainability. Around 75% of the
units are running on profit. Shortcomings in some areas (in
marketing and product standardization) still exist but through
more exposure to training and experiences, these hurdles can
be bypassed. Adopting all the ways of advertising, Appointing
Professional agencies for outside advertising, Developing a
separate logo and slogan for the product, Diversifying the
product portfolio, Conducting regular exhibitions and
Increasing small outlets and exclusive showrooms for
Kudumbashree products are found to be some of the measures
to build up a bright future for Kudumbashree enterprises.
Anyway we hope that a bright and sunny tomorrow awaits
them and this study may help them to reach out to that
glittering day.
REFERENCE
[1]

[2]

CONCLUSION

Kudumbashree became the lifeline to many of the poor

women in the state of Kerala especially in the Malappuram. It
is a massive anti poverty programme of the Government of
Kerala aiming at eradicating poverty and salvage the destitute
from the wretches of extreme deprivation. The relative success
of Kudumbashree enterprises is a clear sign of widespread
acceptance of community-based activities done to uplift the
poor and downtrodden people. Poor Women have truly been
empowered by joining in Kudumbashree organs like
Neighbourhood groups and Micro enterprises. The State
Poverty Eradication Mission-Kudumbashree- launched by the
Government of Kerala State in India is a massive poverty
eradication programme in contemporary history. It has been
proved without any doubt that women empowerment is the
best strategy for poverty eradication Women who were
regarded as voiceless and powerless started identifying their
inner power, their strength, opportunities for growth , and their
role in reshaping their own destiny. The process of
empowerment becomes the beacon light to their children, their
families and to the society at large.

82

[3]

[4]
[5]

[6]

[7]
[8]

[9]

Subha rao K, Anirudda Banarjee, Jeamine Braith Waithe, Soniya

Carvalho, Kene Ezamenari, Carol graham and Allan Thompson Safety
net programmes and poverty reduction lessons from cross country
experience Washington DC World Bank, 1997
Srivasthava RM(1999 ), Emerging profile of small women enterprises
cum managers in India. A case study Women in Management
Champions of Change,in Khair Jahan Sogra, University Press Ltd,
Dhaka, Banladesh.Pp-69 .
Manimekalai M and Rajeswari G(July- Sept 2001), Nature and
performance of informal self help groups, A case study from Tamil
Nadu, Indian Journal of Agriculture-Economic Volume, 56, No 3,Pp
453-454 .
Jose TK,-winning together , A success story of Kudumbashree in
kerala, Paper presented at Annual PRM at Tiruvanathapuram,2006
K.Damodaran, (2006), A detailed Study on Role of Kudumbashree in
Poverty Eradication In Kerala, Paper Presented at Department of
Commerce, University of Calicut.
Reshmi. R. Role of Kudumbashree Micro enterprises in alleviation of
poverty with special reference to their marketing strategies. Vol.1 Issue
12, Pp 174-177,186-187,(December 2012),ISSN 2277 3630
S.P.Gupta, Statistical Methods, Sultan Chand & Sons Publication,
New Delhi 110002,2002.
C.R.Kothari, Research Methodology, New age International (P)Ltd,
Publishers,New Delhi.Pp95-98,100-102( 2009),ISBN : 978-81-2241522-3.
The Kudumbashree Mission is functioning under the directorate of the
Government of Kerala.

WEBSITES
[1]
[2]
[3]

www.kudumbashree.org
www.kerala.gov.in
www.womenictenterprise.org

We can obviously say that the perceptions like capability,

deprivation is one among the root causes of poverty and
building capability of poor is inevitable to make poverty
alleviation efforts sustainable is true in all sense. For attaining
that goal, making the efforts to perfect Micro entrepreneurship
is inevitable. Neighbourhood groups and their allied micro
enterprises seems to be the one and only solution to save the
rock bottom poor who live in utter distress and despair and
who were left out from the coverage. Kudumbashree micro
enterprises perceptibly depict how grass roots-level activities
are essential for womens active participation in social and
economic life. Even though there are so many pitfalls and
shortcoming. These micro units has been successful in
reaching the unreached through providing ways and means of
living and financial independence. Even though the

ISSN 2277-5056 | 2015 Bonfring